Renault Shelves Ampere IPO Amid Slowing BEV Sales

Weakening uptake of battery-electric vehicle sales in Europe has persuaded Renault to shelve stock market flotation plans for its specialist manufacturing wing, Ampere.

The automaker’s CEO, Luca de Meo, had talked enthusiastically to WardsAuto about the revenue potential of Ampere during the IAA Mobility show in Munich last September. Reuters reports he expected an IPO could be worth up to €10 billion ($10.8 billion).

However, slowing demand for BEVs plus a wave of less-expensive products from Chinese automakers have influenced Renault’s decision to hold off stock market flotation for Ampere.

That said, the automaker's longstanding alliance partners Nissan and Mitsubishi are continuing plans to invest in the BEV unit while chip maker Qualcomm intends to place its investment plans on hold until an IPO does go ahead, Renault says. Renault reiterated on Monday that these companies were interested in investing in Ampere even if the company did not proceed with an IPO.

In statement de Meo says: “Today, we took a pragmatic decision. We are all focused on executing our strategy and building our track record to create value for all our stakeholders.

"Renault Group's strategic plan, Renaulution, is self-funded and the results which will be released for 2023 confirm the group’s ability to generate sustainable cash flow to finance its future (including Ampere development)," the statement says. "Considering both current equity market conditions and stronger cash generation, Renault Group has decided to cancel the Ampere IPO process.”